Podcast
Questions and Answers
What does the Rational Model of decision-making primarily focus on?
What does the Rational Model of decision-making primarily focus on?
Which decision-making model emphasizes the involvement of various parties to reach an agreement?
Which decision-making model emphasizes the involvement of various parties to reach an agreement?
In which decision-making condition is a decision maker most likely to have complete information?
In which decision-making condition is a decision maker most likely to have complete information?
Which model is characterized by its adaptability to changing conditions and ongoing feedback?
Which model is characterized by its adaptability to changing conditions and ongoing feedback?
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What is a key aspect of the Judgemental Model in decision-making?
What is a key aspect of the Judgemental Model in decision-making?
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What characterizes the rational decision-making model?
What characterizes the rational decision-making model?
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Which type of decision-making model involves identifying goals and solutions that are independent?
Which type of decision-making model involves identifying goals and solutions that are independent?
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What does the judgemental decision-making model primarily deal with?
What does the judgemental decision-making model primarily deal with?
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Which bias causes decision-makers to rely on strong prior beliefs even when faced with contrary evidence?
Which bias causes decision-makers to rely on strong prior beliefs even when faced with contrary evidence?
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What type of challenges do negotiated decisions typically address?
What type of challenges do negotiated decisions typically address?
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In which decision-making model is 'satisficing' used to make choices?
In which decision-making model is 'satisficing' used to make choices?
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What does the adaptive approach prioritize in decision-making?
What does the adaptive approach prioritize in decision-making?
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What is an example of escalating commitment bias in decision-making?
What is an example of escalating commitment bias in decision-making?
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What is the primary focus of the Judgemental Model in decision-making?
What is the primary focus of the Judgemental Model in decision-making?
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What characterizes the Negotiated Model of decision-making?
What characterizes the Negotiated Model of decision-making?
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Which of the following best describes the concept of 'bounded rationality'?
Which of the following best describes the concept of 'bounded rationality'?
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What does the Adaptive Approach in decision-making emphasize?
What does the Adaptive Approach in decision-making emphasize?
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When using the Judgemental Model to accept a job offer, what is a key step you should take?
When using the Judgemental Model to accept a job offer, what is a key step you should take?
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In the context of the Negotiated Model, what often contributes to decision-making conflicts?
In the context of the Negotiated Model, what often contributes to decision-making conflicts?
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Which factor is NOT a consideration when defining criteria for decision-making?
Which factor is NOT a consideration when defining criteria for decision-making?
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What is the purpose of assigning scores to options in decision-making?
What is the purpose of assigning scores to options in decision-making?
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Study Notes
C17EB Management in a Global Context
- This course covers management in an international context.
- Week 2 focuses on the business environment.
Session Content
- Understanding international business conduct
- Understanding the business environment
- Performing a PESTEL analysis
- Understanding driving forces of competition in an industry
Competing Values Framework (Quinn et al., 2015)
- A framework for understanding competing values in organizations.
- Shows competing values within organizations (e.g., collaborate vs. compete)
- Key values presented on a two-axis graph.
Managing Internationally
- Offshoring: contracting out activities to other countries
- Exporting & Importing: physically moving products/materials
- Foreign Direct Investments: building or acquiring facilities in another country
- Licensing: production of goods/services to a company in another country under licence
- Joint Ventures: where two organizations share risks and resources
- Wholly Owned Subsidiaries: a standalone company owned/operated by a holding company
- Multinational companies: based in one country, operate in many
- Transnational companies: operate in many, but decentralize while maintaining a consistent image
- Global companies: closely integrated operations across many countries
International PESTEL Analysis
- 6 external factors impacting overseas investment/operations
- Affects company policies and practices
- Can represent opportunities or challenges
- A simplified framework for international analysis
Political Factors
- Political rules on foreign ownership
- Level of state intervention
- Government attitudes to foreign investment
- Policy on employment practices, working conditions, job protection
- Patent and intellectual property policy
- Political stability
- Corruption
Economic Factors
- Nation trade theory (absolute advantage) to specialize in good/services
- Countries with lower production costs have an advantage
Socio-Cultural Factors
- Cultural differences impact social practices and understandings.
- Cultural intelligence is essential for international managers to understand diverse cultures and adapt
- Hofstede's cultural dimensions (e.g., power distance, uncertainty avoidance)
Technological Factors
- Technological factors consider infrastructure (ports, airports, surface transport, electricity, telecommunications, internet)
Environmental Factors
- Environmental factors include natural resources (oil, coal, minerals, land, climate, water)
Legal Factors
- Trade agreements and trade groupings (e.g., GATT, WTO, European Union)
The External Environment
- Diagram illustrating the components of the external environment (e.g., political, economic, competitive, socio-cultural, technological, legal)
General Environment – PESTEL Analysis
- Political, Economic, Socio-Cultural, Technological, Environmental, and Legal factors.
- Data examples include taxation policies, interest rates, demographics, climate change, and employment law.
Porter's 5 Forces Analysis (1980)
- Diagram showing the 5 forces (i.e., threat of new entrants, rivalry among competing sellers, bargaining power of buyers, bargaining power of suppliers, availability of substitute products)
- Rivalry among competing sellers increases when there are many firms but no firm is dominant, the market is growing slowly and costs are high
Intensity of Rivalry
- Greater rivalry leads to less profit
- Rivalry increases with: many firms, but none dominant; market growing slowly, high fixed costs, and loyalties (family businesses/political support).
Threat of New Entrants
- Affected by entry barriers such as high costs of equipment and facilities.
- Lack of distribution facilities, customers loyal to established brands, small companies lacking economies of scale, and subsidies/regulations favouring existing firms.
Bargaining Power of Buyers
- Greater buyer power = less profit to seller
- Buyer power increases if buyers take a large percentage of sales or if many alternatives/suppliers are available.
- Product is a small percentage of buyer costs and cost of switching is low.
Bargaining Power of Suppliers
- High supplier power = less profit to buyer
- Supplier power is high if buyers take a small percentage of sales.
- Few alternative products or suppliers.
- Products are a small percentage of buyer costs, and the cost of switching is high.
Substitutes
- Easy substitution = less profit for competing firms
- Substitution is easier when buyers willingly change their buying habits.
- Technological developments enable new products and services, and transport costs fall.
- New suppliers enter the market.
Managing the 5 Forces of Competition
- A model to assess industry attractiveness.
- A model to understand the most important forces driving the ability to make profits.
- Managers can try to reduce the power of competition
Week 5: Decision-Making
- Programmed vs. non-programmed decisions
- Decision contexts (certainty, risk, uncertainty, ambiguity).
- Models in decision-making (rational, judgemental, negotiated, adaptive).
- Important decision making examples for industry.
Types of Decisions
- Programmed (structured): routine decisions with standard solutions.
- Non-programmed (unstructured): unique/non-routine decisions needing new solutions.
Relationship between Problem Type, Decision Type and Level in Organisation
- A diagram showing the relationship between problem type, decision type and hierarchical level in an organization
Decision-Making Models
- Rational model (economic factors, weight allocation, to achieve goals)
- Judgmental model (in uncertain situations)
- Negotiated Model (involving various parties with differing interests)
- Adaptive model (adapting to new situations)
Bias in Decision-Making
- Prior hypothesis bias
- Representativeness bias
- Illusion of control
- Escalating commitment
- Emotional attachment
Collective and Collaborative Decision-Making
- Importance of diverse perspectives, employee engagement, and increased collaboration in decision making.
Group Think
- A pattern of biased thinking that occurs in group decision-making
- Leads to a lack of challenge and critical appraisal
- Characteristics include illusion of invulnerability, rationalisation, belief in inherent morality, stereotyping out groups, self-censorship, direct pressure, mindguards and illusion of unanimity
Communicating
- Communication is crucial for innovation, quality, and delivery.
- Communication tools, techniques, and methods are important and critical for efficient business communication.
Communication Process Theory
- Includes message, encoding, decoding, medium, noise and feedback (reaction to message)
- A communication theory for understanding communication
Selecting Communication Channels
- Different channels have different degrees of richness
- Lengel-Daft media richness hierarchy diagrams the information richness of various communication channels (e.g., face-to-face, email).
Interpersonal Skills for Communicating
- Key sender and receiver skills
- Includes paying attention, being an empathetic listener, and avoiding noise.
Whetten and Cameron
- Framework for supportive communication, covering various perspectives including problem oriented, congruent, descriptive, validating approaches and those to be avoided
Influencing Tactics
- A description of different tactics for influencing others.
Teams
- Teams are groups of people with complementary skills who are committed to a common purpose, with members being accountable to each other.
Types of Teams
- Formal team
- Vertical team
- Horizontal team
- Informal groups
- Self-managing teams
- Virtual teams
- Matrix team structure
Team Roles (Meredith Belbin)
- Nine different clusters of behaviour
- Contributions for team progress
- Individual roles
Stages of Team Development
- A process of steps of team creation/development (forming, storming, norming, performing, adjourning).
Effective Meetings
- Successful meetings have an agenda, and decisions are circulated in a timely manenr.
- Failure meetings lack structure.
Tips for Team Management
- Agreeing on tasks, outputs, goals, strategies, timetables, action points, deadlines, and tasks and skills complementarity needed.
Human Resource Management
- Detailed workforce analysis for organizational planning
- Includes forecasting, job analysis, and recruitment.
Content Theories of Motivation
- List of content theories motivation that are based on the goals/needs people pursue in the workplace.
- Examples include money, quality of supervision, career prospects
Process Theories of Motivation
- Theories such as Goal Setting Theory.
- Set challenging goals
Equal Opportunities and Diversity
- Legislation encouraging or requiring fair employment practices to ensure equal opportunities.
- Diversity management emphasizing diverse workforce value.
Creativity/Innovation/Change
- Definitions of creativity, innovation, and change.
- Resources/processes promoting creativity.
- Theories of change
Operations Management
- The four 'V's (volume, variety, variation, visibility)
- Types of production/service systems (Project, job-shop, batch, mass/continuous; professional services, service shops, mass services).
- Principles of total quality management.
- Exam tips
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Description
Test your knowledge on various decision-making models with this engaging quiz. Explore concepts such as the Rational Model, Judgemental Model, and collaborative decision-making processes. Perfect for students and professionals looking to enhance their understanding of decision theories.
